US Labor Department •

US nonfarm payrolls surges 295,000 in February

American employers stepped up hiring in February with the unemployment rate dropping to its lowest level since the spring before US President Barack Obama assumed office.

Market analysts say this could impose severe pressure on the Federal Reserve Bank to raise interest rates in June.

Nonfarm payrolls surged 295,000 in February after rising 239,000 in January, according to the US Labor Department report. The broad gain in job market came despite severe disruptions due to harsh winters that made life restless across large parts of the United States in the middle of February.

The rate of unemployment fell two-tenths of a percentage point to 5.5 percent, which is its lowest level since May 2008, tumbling into territory that some Federal Reserve officials consider consistent with complete employment.

Scott Anderson, chief economist at Bank of the West in San Francisco, said, “The labor market is on a roll. This should ease fears at the Fed that the global downturn and sharp drop in oil prices are materially disrupting the US economic outlook, and keep the Fed firmly on course for a June lift-off.”

The stocks at Wall Street and shorter-dated government bonds dropped sharply as traders continued to bet when the US central bank would raise key rates.

The US dollar hit an 11-1/2-year high against the euro, which has been under severe pressure ever after the European Central Bank (ECB) announced a bond-buying program in order to lower euro zone borrowing costs.

US jobless claims drop 21,000 to 283,000 last week

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The number of applications filed by the people in the United States for claiming their unemployment benefits dropped more than the expectations last week, offering fresh evidence that the country’s labor market was gathering steam.

The initial claims for state jobless benefits fell 21,000 to a seasonally adjusted 283,000 for the week that ended on February 14, according to the Labor Department report released on Thursday.

Several economists had made forecasts of state unemployment claims dropping to 293,000 last week.

Chris Rupkey, chief financial economist at New York-based MUFG Union Bank, said, “The jobs market has its pedal to the metal. We have crossed the dividing line where there are more signs of labor shortages now than there is an excess supply of discouraged workers pounding the pavement.”

The country’s labor market was also encouraged by America’s largest private sector employer, Wal-Mart Stores Inc, which said it would spend over USD one billion in 2015 to raise pay for nearly 40 percent of its American workforce.

The hourly full-time and part-time Wal-Mart workers will earn nearly USD 9 per hour, or USD 1.75 above Fed’s current minimum wage, starting in April.

The sturdy growth of wage has been the missing thing in the recovery of jobs, which is signaling towards a rapid increase.

The country’s labor market is becoming robust from jobless claims to payrolls and the job openings even when the rate of economic growth has slowed in the recent months.

In another development, a separate report on Thursday showed the factory activity in the US mid-Atlantic region decelerated in the month of February to its lowest level in a year amid firms struggling hard to get new overseas business.

US job openings hit 14-year high in November,signal strong hiring in 2015

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The employers in the United States offered the highest number of job openings in November in about 14 years, providing enough evidence that the strong hiring recorded in 2014 will likely continue this year too.

According to the US Labor Department, the job openings in the month of November increased 2.9 percent to 4.97 million, the most recorded since January 2001.

More employment vacancies also encouraged more hiring. However, the employers were seen slowing the process to fill their job openings for most of the recovery.

The jobs report, released on Friday, showed that the US employers added a total of 252,000 jobs in December, pronouncing the best year for hiring in last 15 years. About three million more people commenced earning paychecks last year. That was the most recorded since 1999.

Job openings have soared in 2014. This signals that the companies still want to engage in more hiring this year even after a large number of jobs offering in 2014.

Writing in a note to clients, Ian Shepherdson, chief economist at Pantheon Macroeconomics, said, “The surge in the number of job openings since last spring is nothing short of spectacular Should such increases continue, the greater is the chance the wage pressures intensify.”

Whatever be the scenario of the labor market, but the improvements here hasn’t yet boosted the hourly pay. As the unemployment rate continues to be lower, the employers are expected to offer higher pay so as to attract the workers as per their requirement. But experts say there is a little indication that wages have started to increase yet.

US unemployment claims drop unexpectedly to seven-week low

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The number of jobless application in the United States for claiming the unemployment benefits dropped unexpectedly last week, signaling toward a sustained strength of the country’s economy.

A Labor Department report, released on Wednesday, showed that the initial jobless claims for enjoying the state unemployment benefits fell 9,000 to a seasonally adjusted 280,000 for the week that ended on December 20, marking the fourth consecutive week of declines.

According to the market analysts, this is the lowest reading recorded since November 1.

The claims report also suggested that the number of people still receiving the unemployment benefits following an initial week of aid increased 25,000 to 2.40 million in the week that ended on December 13.

The report was released by the Labor department a day after the government reported that the country’s economic growth expanded at its fastest pace in 11 years in the third quarter, while the consumer spending rose firmly in November.

Several economists had made a forecast that the jobless claims would tick up to 290,000 last week.

Meanwhile, the US stocks traded higher on the report and added to a five-day winning streak that had pushed the S&P 500 and Dow Jones Industrials to closing records.

The US Treasury debt yields increased to two-week highs. And the US dollar fell against a basket of currencies after gaining its highest level in about nine years earlier this week.

The four-week moving average of unemployment claims dropped 8,500 to 290,250 last week.

The number of jobless claims is considered to be a better measure and understand the trends of the country’s labor market.

Last week, the Federal Reserve Bank has given the economy a vote of confidence and lowered its forecast for unemployment rate, signaling it could commence raising interest rates by mid-2015.

41 American states witness drop in unemployment in November

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The rate of unemployment declined in 41 states in the month of November, signaling toward a breakout month for the national labor market.

The joblessness rose in three states and remain unchanged in six, the Labor Department said on Friday.

According to the report, 24 states had posted the drop in unemployment rate at least two percent on a seasonally adjusted basis in November.

North Carolina witnessed the steepest downfall to 5.8 percent from 6.3 percent. According to economist Michael Dolega of TD Economics, the state is reaping the benefits of a shift in manufacturing from sectors like old-line textiles as well as furniture to the fast-growing industries, including aerospace and pharmaceuticals.

The unemployment declined 0.4 percentage points in four states, leading to rates of 7.2 percent in Georgia, 6.7 percent in Michigan, 6 percent in Delaware and 5.6 percent in Maryland. The unemployment also declined significantly in Missouri, Nebraska, Ohio, Arkansas, Tennessee, Pennsylvania and Virginia.

The instant decline in Georgia allowed it to be overtaken by Mississippi as the state with the highest joblessness rate of 7.3 percent. North Dakota, which is received maximum benefit from an oil boom, continued to have the lowest unemployment rate of 2.7 percent.

The payrolls also rose in 37 states and the District of Columbia, California jagged the highest surge, 90,100. With 41,900 gains, Florida was followed by Texas that picked up 34,800 employments.

Vermont saw the biggest surge in percentage terms, with jobs rising 1.2 percentage points, followed by Hawaii, Delaware South Carolina and Wisconsin.

US unemployment claims hit lowest level in three weeks

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The US unemployment claims hit the lowest level in three weeks as Americans turned up in low numbers for filing new applications to claim their jobless benefits, according to a government report released on Thursday.

The report prepared by the US Labor Department showed that initial claims for state unemployment benefits fell by 3,000 to 294,000 in the week that ended on December 6.

Several economists had expected initial jobless claims to decline slightly to 296,000 from 297,000 in the previous week.

The weekly initial unemployment claims hit a recent deep of 266,000 in the month of October, the lowest tally since 2000.

The average of new unemployment claims over the past month grew by 250 to 299,250. The economists took into consideration the four-week averages for the identification of proper job trends, rather than looking at weekly volatility.

Jim O’Sullivan, chief US economist at High Frequency Economics, said, “The change is still fairly modest given normal volatility, especially at this time of year. Nor is there any sign of a sustained uptrend in new claims.”

According to the economists, the Thursday’s data gave clear indications about the movement of labor market in the right direction.

The government also reported that the continuing claims rose by 142,000 to a seasonally adjusted 2.51 million in the week that ended on November 29.

The continuing claims represent the number of people already receiving the unemployment benefits. The four-week average of continuing claims increased by 27,750 to 2.39 million.

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